Kenya

African Free Trade Zone

Twenty-six African countries have created a free trade zone that will have an estimated GDP of $624bn. The Southern African Development Community (SADC), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (Comesa) have united and now make up the free trade zone. The new agreement should give Africa a stronger voice on the world stage.

“The greatest enemy of Africa, the greatest source of weakness has been disunity and a low level of political and economic integration,” Ugandan President Yoweri Museveni. The problem of cooperation between the African states has been a major setback. But, the new free trade zone is a sign of reciprocity and a step in the right direction. The new policy has increased interdependence between the twenty-six states and this should help all the states have excess to each other’s markets. More excess will increase intra-regional trade and create economic growth. Furthermore, the free trade zone will strengthen the bargaining power of the entire bloc when negotiating international deals. Such strength should encourage foreign investment and trade from outside the region.

Liberal

http://news.bbc.co.uk/2/hi/business/7684903.stm

http://article.wn.com/view/2008/10/22/Leaders_gather_for_first_ever_tripartite_summit/

October 24, 2008 at 11:40 am